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ETFs

FIND OUT MORE ABOUT ETFs

What are ETFs?

Tracker funds are indexed funds listed on the stock exchange, marketed under the name ETFs or Exchange Traded Funds, i.e. funds that can be traded on the stock markets. They combine the advantages of a security listed on an organized market (simplicity, liquidity, continuous trading...) with those of a traditional fund (instant diversification within a European regulatory framework).

The concept is quite simple:

The ETF replicates — or better yet, « tracks » — the performance of a reference index. Its objective is to generate return equal to that of its index. For example, if the CAC 40 gains 3%, the tracker will appreciate 3% at the same time.

An ETF offers real-time exposure to an asset class, region, country, business sector etc. thanks to constant stock market listing. For example, you can decide to gain exposure on the Indian market regardless of the operating or closing hours of the local stock exchange.

Optimised, simplified management

Trackers are an ideal way of constructing, managing and optimising a diversified portfolio. Find out more

Who buys ETFs?

Initially designed for financial professionals, the tracker fund market has gradually been opened up to all types of investors.

Trackers: the origin of their success

Trackers were first introduced in the United States at the start of the 1990s, but it was not until the end of that same decade that they really came into their own.
In 2001, Lyxor seized the initiative to introduce trackers in the French market, initially gaining success first in Europe and then in Asia.
At the end of May 2007, assets stood at USD 471 billion, while trading volumes surpass USD 32 billion each day.

What do trackers allow investors to do?

  • take full advantage of market trends no matter what your investment horizon,
  • benefit from the upside potential of all securities within an index – instantaneously and through a single transaction,
  • access a large range of securities in one single stock exchange transaction regardless of the exposure (French, European, Asian, US or Global),
  • minimise risk through diversification.